In order to be able to strategically align a company in a meaningful way, in most cases it needs to be divided into strategic business areas. How this division is made determines the way the company thinks and acts:

• A company divided into products or product lines optimizes action according to product logic
• A company segmented by customer groups is strongly oriented towards customer needs and solutions for target groups
• A functionally structured company maximizes skills and actions according to functions
• A company that is structured along distribution channels will develop particular strengths in building and operating multiple distribution channels.

Of course, all of these elements are present in every company – products, customer groups, functions, sales channels and other elements are needed in every company. The crucial difference, however, is the question: “Which of these elements does the company primarily think and act according to?”

The priority of one of these criteria will, over time, lead to the company acquiring special skills in the logic of its business division. The chosen priority will be noticeable in its corporate culture. The controlling instruments will be aligned accordingly, as will the incentive models. The definition of quality, the objectives, internal training programs, marketing instruments, the website, the employer branding – the company’s priority orientation will be noticeable everywhere. The business division logic permeates the entire company and, over time, forms its DNA.

Business areas today – business areas in the future

One of the most important executive tasks is to periodically review the company’s business division structure: Where is it taking the company? Is the direction right? Is there a need for correction, in the sense of ‘fine-tuning’ or ‘turning the wheel around’? Which of the current business divisions have which task: growth areas? Cash suppliers? Start-up businesses? Withdrawal businesses? Geographical expansion?

However, especially in businesses with slow growth or stagnation, thinking in terms of today’s business areas alone does not provide enough perspective. In addition, it is necessary to find and create the business areas of the future. The starting point for this is unresolved customer problems, consumer needs that are not sufficiently satisfied and – most importantly – new technologies and processes and the resulting opportunities to establish new businesses and create new markets thanks to completely new customer benefits.

To review, confirm or renew your strategic business areas, we recommend the following services:

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Management Seminar

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Consulting

If you want to hire strategy consultants, you should first make the following decision: Should the consultants write the strategy for you or should they support your company’s managers in developing the best possible strategy themselves?
After 40 years of experience and hundreds of strategy projects, we recommend the latter. The best partner for this:  St.Gallen Consulting .